The recent drop in gold prices sparked off reasonable buying interest from stockists and retail consumers ahead of the long wedding season, trader said.

The shiny metal had plunged to a fresh one-month low on Thursday.

On the global front, gold finished higher on bargain hunting amid speculation of more stimulus measures from US Fed in its forthcoming meet despite a stronger-than-expected jobs data in the world's largest economy.

Gold for February delivery moved up $3.70 to $1,705.50 an ounce on the Comex division of the NYMEX late yesterday.